No shares are going to be issued. A potential foreign distributer is going to take a stake in the company in return for:
(1) A line of credit through this company. (2) Films from the companies library that have not been distributed in the US yet. (3) Potential future films from this company will be distributed by HH. (4) $1.25 Million cash in addition.
Much like the 20th Century Fox deal, HH would almost be getting a royalty off of these other companies' films, without having to front any cash. This translates into profits going forward.
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